Safe and Sound

CHAVES COUNTY SCHOOL EMPLOYEES

Roswell, NM-based CHAVES COUNTY SCHOOL EMPLOYEES is an NCUA-insured credit union founded in 1952. Regulatory filings show the credit union having $25.5 million in assets, as of December 31, 2017.

With 5 full-time employees, the credit union currently holds loans and leases worth $8.4 million. CHAVES COUNTY SCHOOL EMPLOYEES's 2,512 members currently have $20.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CHAVES COUNTY SCHOOL EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a credit union's financial resilience. It acts as a bulwark against losses and affords protection for members when a credit union is experiencing financial instability. From a safety and soundness perspective, more capital is preferred.

CHAVES COUNTY SCHOOL EMPLOYEES achieved a score of 26 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, better than the national average of 15.65.

CHAVES COUNTY SCHOOL EMPLOYEES had a capitalization ratio of 26.00 percent in our test, higher than the average for all credit unions, an indication that it's more well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due loans.

Having extensive holdings of these kinds of assets suggests a credit union may have to use capital to absorb losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

CHAVES COUNTY SCHOOL EMPLOYEES scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.09.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand economic shocks. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, CHAVES COUNTY SCHOOL EMPLOYEES scored 6 out of a possible 30, failing to reach the national average of 10.11.

One indication that the credit union is beating its peers in this area was its earnings ratio of 0.00 percent in our test, higher than the average for all credit unions.

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.

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